Agenda and minutes

There were no members of the public present.

-        Strategic Director of Finance to report.

Councillor Sangster, Chair of the Audit Committee, introduced a report that presented the Audit Committee Annual Report 2009/10, which showed key information relating to the Committee, its achievements during the year and key targets for 2010/11.

The Audit Committee had previously been commended by the external auditor and the annual report, therefore, showed that it had successfully fulfilled its terms of reference and improved the Council’s governance and control environments and additionally showed how the Audit Committee intended to build upon its strengths during 2010/11 and help the Council to maintain strong internal controls.

It was noted that there were no direct financial implications arising from this report.

The Council achieved a commendable “3” score for its Use of Resources in 2009 having previously received a commendation for its Audit Committee. The preparation of an Annual Report was, therefore, in line with best practice and would help the Council to maintain a positive Use of Resources score in 2010. 

(1)  Resolved:-  That the contents of the Audit Committee Annual Report for the year 2009/10 and in particular the positive work of the Audit Committee during the year be noted.

(2)  Recommended:-  That the Audit Committee Annual Report 2009/10 be approved.

-        Strategic Director of Children and Young People’s Services to report.

Further to Minute No. 230 of the meeting of the Cabinet held on 28th April, 2010, Councillor Lakin, Cabinet Member for Children and Young People’s Services, introduced a report by the Strategic Director of Children and Young People’s Services, which detailed the review of Corporate Parenting Structures undertaken by the Looked After Children’s Scrutiny Sub-Panel between November, 2009 and March, 2010.

This Review had been considered by the Council’s Strategic Leadership Team, who recommended agreement to the Scrutiny recommendations, and the Action Plan was submitted for consideration.

The report recommended modernising the arrangements in line with the Government Agenda and with Ofsted Inspection expectations. A proposed Action Plan was developed and was subject to scrutiny from the Strategic Leadership Team. The Action Plan, Impact Analysis and recommendations from Strategic Leadership Team were set out as part of the report.

The Strategic Leadership Team agreed the findings of the review and requested consideration of the action plan with a view to completion of the new structure by September, 2010.   Particular reference was made to the development of a training programme for Elected Members reflecting the different levels of corporate parenting responsibilities, which commenced last week with Safeguarding.  Further session dates for all Members would be circulated in due course and consideration given as to whether particular target groups such as the Cabinet would benefit from specific training arrangements to fit in around the municipal diary and meetings.

The financial implications of each action have been fully considered within the report.  All were nil or minimal costs (associated with administration), with the exception of a recommendation to enhance the Council Celebration of Looked after Children’s achievements, through the development of an annual large celebration event, as opposed to the current two yearly event.

Progression with the actions, as contained within the action plan, would ensure the Council continued to evidence best practice in respect of Corporate Parenting.  If these actions were not progressed the Council was at risk of the corporate parenting structures being viewed as outdated.

Cabinet Members welcomed the recommendations arising from this Scrutiny Review and suggested that the position be closely monitored and the arrangements strengthened with the work that was now taking place.  It was also suggested that this continued to be monitored by the relevant Scrutiny Panel on an annual basis.

Resolved:-  (1)  That the response be received and the recommendations in the action plan approved.

(2)  That reports on the recommendations and action plan arising from this review be submitted to Scrutiny on a regular basis for monitoring.

-        Chief Executive to report.

Councillor Doyle, Cabinet Member for Health and Social Care, introduced a report by the Chief Executive, which detailed how in Rotherham people living in the most deprived neighbourhoods would, on average, die eight or nine years earlier than those living in the least deprived neighbourhoods. Even more disturbing, the people living in the most deprived areas were much more likely to suffer a limiting long-term illness and generally have poorer health. Therefore, people in the poorer areas not only die sooner, but they would also spend more of their shorter lives with a disability.

In addition, Dr. John Radford from NHS Rotherham also reported on the action taken to reduce health inequalities would benefit society in many ways. It would have economic benefits in reducing losses from illness associated with health inequalities. These currently accounted for productivity losses, reduced tax revenue, higher welfare payments and increased treatment costs.

This report, therefore, set out some of the issues relating to the previous Public Health Strategy and made recommendations for the way forward, in light of recent changes to Government and key policy drivers, the Marmot Review, the six policy objectives to be addressed within his review and the role of Local Government.

To establish where existing resources were being spent in relation to heath inequalities and prevention, a thorough audit needed to take place across the Council.  This in turn would inform where resources may be able to be redirected to achieve the goals which would be set out in the new Public Health Strategy. 

Improving public health and life expectancy was of major importance for Rotherham.  Not only would work on this agenda improve people’s wellbeing and life chances, but would also help support the local economy.

Lifestyle related ill health caused the greatest burden on society.  Not putting into place specific measures to reduce health inequalities in Rotherham would not only cause more ill health, but may result in the gap between the most and least deprived areas widening and cause greater pressure on services and budgets in the future.

Cabinet Members noted the importance of the Public Health Strategy refresh which in turn should feed into the Joint Strategic Needs Assessment to identify needs and move towards preventing and dealing with the cause of symptoms.  It was suggested that to aid the process a borough wide demographic health profile be provided to Cabinet Members.

Resolved:-  (1)  That a short scrutiny review be undertaken of the existing and proposed governance arrangements surrounding the role of the Local Authority and NHS Rotherham in addressing public health issues.

(2)  That a refresh of the Rotherham Public Health Strategy be undertaken, ensuring the Strategy focused on prevention and the underlying causes of ill health as recommended in the recent Marmot review.

(3)  That the Council/NHS Rotherham explore resources going into prevention and how more could be achieved or redirected, for example in tackling behavioural activity.

(4)  That the links public health had with the other Cabinet portfolios, in particular Children  ...  view the full minutes text for item 17.

-        Strategic Director of Children and Young People’s Services to report.

Councillor Lakin, Cabinet Member for Children and Young People’s Services, introduced a report by the Strategic Director of Children and Young People’s Services, which set out details of Rotherham’s progress so far to the proposal by the Skills Funding Agency and the Department for Business, Innovation and Skills to channel all funding which supported informal adult learning through the Local Authority as the lead accountable body.

The expectation for the Skills Funding Agency and the Department for Business, Innovation and Skills was to work with local authorities, colleges of further education and a range of other stakeholders and partners over the next year to implement these proposals. As requested, the Council signed an “in principle sign up“ to the new arrangements. Since the change of Government there have been some guarantees that the funding which supported adult learning had been protected from public sector cuts, however, no further instructions have been received regarding the move to Lead Accountable Body status. Once further information was received a further report was to be prepared for Members.

The total Learning and Skills Council funding Adult Safeguarded Learning for 2010 /2011 had been confirmed as £641,024.20.The funding from mainstream Children and Young People’s Services revenue for 2009/2010 was £59,267.00.

Whilst little information had been released by the new Government about the proposals for Adult Safeguarded Learning it was noted that funding had now been allocated and funding rounds would commence from 19^th July, 2010.

Resolved:-  That proposals for the service to become the Lead Accountable Body continue to be supported and that a further report be submitted to Cabinet following the receipt of additional information from the Skills Funding Agency on the responsibilities of the lead accountable body.

-        Strategic Director of Children and Young People’s Services to report.

Councillor Lakin, Cabinet Member for Children and Young People’s Services, introduced a report by the Strategic Director of Children and Young People’s Services, which detailed the Children’s Trust Board intention to publish a new Children and Young People’s Plan in July, 2010.  This would replace the existing Children and Young People’s Plan, which expired in June, 2010.  The new plan set the strategic priorities for the work of partners on the Children’s Trust Board, in light of the requirement for the Children and Young People’s Plan to be prepared and owned by the Children’s Trust Board. 

The guidance, issued by the Department for Children, School and Families, was also explicit in its requirement for broad consultation on the Children and Young People’s Plan and details of the consultation process and its results were set out as part of the report.

The Children and Young People’s Plan had been written in the context of the consultation process as well as other factors affecting the Children and Young People’s Service, including the Notice to Improve and the annual Audit of Need.  The strategic direction outlined in the new Children and Young People’s Plan was structured around the ‘four big things’; these were ‘keeping children and young people safe’ ‘prevention and early intervention’, ‘tackling inequalities’ and ‘transforming Rotherham learning’.  The Children and Young People’s Board had also chosen nine areas of focus for priority action.

The financial costs for conducting the consultation exercise were largely made up of staff time to attend events and meetings, but a number of additional costs were also included, which were detailed.                                                                        

Although, at each consultation event, it had been made clear that individual feedback must be taken in the context of the consultation as a whole, as well as other factors including national and local policy, there was still a risk that individuals and groups may not feel that their views and suggestions were reflected in the new Children and Young People’s Plan and might be resistant to becoming involved in consultation activities in the future.

The Children and Young People’s Plan must include a section to show that all strategic priorities would be adequately resourced.  In the current financial climate it may not be possible to commit resources to the level of activity that service users have suggested during the consultation.

Cabinet Members noted the contents of the report, but suggested that consideration be given to the implications of the Building Schools for the Future funding being withdrawn.

(1)  Resolved:-  That the contents of the report be noted.

(2)  Recommended:-  That the new Children and Young People’s Plan 2010-2013 be approved for publication.

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation, introduced a report by the Strategic Director of Environment and Development Services, which outlined a programme for the allocation of £1.5 million capital investment block of the Capital Programme for 2010/11.

The funding was principally allocated to replace the minor maintenance and minor strategic capital investment blocks that were previously supported by capital receipts.

The investment programme had been allocated initially with projects that were approved within the 2009/10 programmes incorporating many projects that have not been completed and sums were required to carry forward into 2010/11.

The balance had been allocated principally on a health and safety basis taking into account front line services and considering potential to fund from other sources.

The allocation of £1,500,000 per annum was included in the proposed Capital Programme 2010/11.

The programme was to be supported through capital receipts from the sale of property and or prudential borrowing.

The major risk to this programme was that, in spite of rigorous investment prioritisation and exploitation of all funding opportunities, the objectives and targets in the Council’s Corporate Plan would not be achieved within the timescales and/or sufficient funds would not be available. 

There was a potential high risk that within the current economic climate that the Council was unable to realise capital receipts through the sale of assets.

The need to carry out the works scheduled in the report was based on prioritisation criteria of which health and safety and the risk of failure of statutory inspection were the main ones.

Failure to fund and carry out the works could result in prosecution or failed inspection.

Recommended:-  That the programme for the £1.5 million capital investment block of the Capital Programme 2010/11 as set out in the report be approved and it be included in the Capital Programme for 2010/11.

-        Strategic Director of Finance to report.

Councillor Sharman, Deputy Leader, introduced a report by the Strategic Director of Finance, which detailed how the Council budgeted to spend £210.850 million inclusive of use of balances on its General Fund revenue account in 2009/10.  Actual spend against this was £210.691 million, a saving against budget of £0.159 million (or 0.08%).

In addition, the schools budgeted to spend £195.144 million on their Delegated Budgets. Actual spend against this was £197.309 million, an additional spend of £2.165 million for the year (or 1.11%), which would be financed from accumulated schools’ balances brought forward at the beginning of the financial year.

The Council budgeted for a balanced Housing Revenue Account in 2009/10. Actual spend resulted in a surplus of £0.697 million. This represented a 0.9% under spend.

In total, the Council budgeted to spend £410.907 million on its General Fund Revenue Account in 2009/10. Excluding School Delegated Budgets brought forward from 2008/09, the budgeted spend was £405.994 million. The actual spend against this was £408.000 million, a total use of balances of £2.006 million.

The summarised effect of this outturn position on the Council’s reserves could be seen in more detail in the report, which also contained an analysis of the Council’s reserves as at 31st March, 2010. These reserves needed to be considered alongside the above variations against budget in 2009/10 and the list of balances to be carried forward under the Council’s approved policy on carry forward of year end balances.

Risks were involved when decisions were taken about the level of resources (including reserves and balances) that were deployed to deliver the Council’s priorities. Continuing improvements in financial management, including the more effective management of financial risks, would minimise the impact of unforeseen circumstances and adverse variances against budget.

Cabinet Members discussed the proposals in detail particularly around the recommendation that, due to exceptional circumstances, the overspends experienced by Children and Young People’s and Neighbourhood and Adult Services be not carried forward for recovery in accordance with the Council’s approved scheme and that the underspends in other areas offset the overspends in these two Directorates for the 2009/10 financial year.

Clarification was, therefore, sought on the overspends and variances and the exceptional circumstances around the request for this year.

(1)  Resolved:-  (a)  That the Council’s Revenue Outturn Position Statement for 2009/10 on both the General Fund and on the Housing Revenue Account be noted.

(b)  That the level of the Council’s Revenue Reserves as at 31st March, 2010 be noted.

(c)  That a contribution of £100k from the General Fund Reserves to the Winter Maintenance Reserve be approved.

(d)  That a contribution of £200k from the General Fund Reserves to the Statutory Costs Reserve be approved.

(e)  That the overspends on the Children and Young People’s and Neighbourhood and Adult Services be not carried forward in accordance with the Council’s approved policy on the carry forward of year end balances on the Revenue Account.

(2)  Recommend:-  That under the Council’s approved policy, balances be carried  ...  view the full minutes text for item 21.

-        Strategic Directors of Finance and Neighbourhoods and Adult Services to report.

Councillor Akhtar, Cabinet Member for Housing and Neighbourhoods, introduced a joint report by the Strategic Directors of Finance and Neighbourhood and Adult Services, which set out how CLG were currently consulting with Housing Authorities on proposed changes to the current national council house subsidy system and replacing it with self-financing arrangements. The details of the proposals and the implications for Rotherham were set out in this report.

It was noted that the Council had submitted a positive response to the consultation, supporting the proposed changes, but the final version would be amended for any further points raised by Members at the Seminar on 1st July, 2010.

The proposed changes to housing finance and the implications of these changes were complex and technical. Rotherham, along with many other local authorities, had been working with the Chartered Institute of Housing to determine the likely implications for the Council.

The report also set out in detail information related to:-

·              The Housing Revenue Account Prospectus.

·              The National Position.

·              Rotherham’s Modelling - Main Assumptions.

·              Proposed Settlement for Rotherham.

·              Sensitivity Testing of the Rotherham Model.

·              Summary of Modelling Outcomes.

·              Comparing Self Financing to Subsidy.

·              Risk and Reward.

The proposed debt settlement figure for Rotherham included in the prospectus was financially viable for Rotherham and on this basis it was proposed that a positive response be submitted to the consultation. In summary these proposals would give the Council the flexibility to:-

·              Repay the Housing debt early.

·              Generate Housing Revenue Account surpluses.

·              Deliver a range of additional housing capital investment.

·              Build new homes.

The large majority of authorities, like Rotherham, would have a potentially viable plan and certainly one which had more resources compared to staying in an unreformed system. Some of the problems facing other authorities which may affect their response were not factors here.

In this context, the overwhelming majority of authorities may well be minded to respond positively to the proposals for self financing on the terms that appeared in the prospectus. However, there were some national caveats.

Given that the prospectus has been issued at a time of considerable change with financial and policy uncertainty, there is the potential for the proposals not to proceed to implementation as planned.

Given the direction of travel of the recent political debate, it may be that the methodology within the settlement remained essentially intact, but there was a risk that the favourable financial terms were reduced by the scrutiny of new policy makers.

Cabinet Members noted the consultation that had taken place and the timescales for the Council to respond to the proposals.

Resolved:-  (1)  That the contents of the report and draft consultation response be noted.

(2)  That further feedback from the Members’ Seminar on 1st July be included in the response prior to its submission as part of the final consultation.

-        Strategic Director of Environment and Development Services to report.

Councillor Smith, Cabinet Member for Economic Development, Planning and Transportation, introduced the minutes of the Local Development Framework Members’ Steering Group held on 18^th June, 2010.

Resolved:-  (1)  That the progress to date and the emerging issues be noted.

(2)  That the minutes of the Local Development Framework Members’ Steering Group held on 18^th June, 2010 be received.

The following items are likely to be considered in the absence of the press and public as being exempt under Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (as amended March 2006) (information relating to the financial or business affairs of any particular individual (including the Council)):-

Resolved, that under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act (information relates to finance and business matters).

-        Strategic Director of Children and Young People’s Services to report.

Councillor Lakin, Cabinet Member for Children and Young People’s Services, introduced a report by the Strategic Director of Children and Young People’s Services, which detailed the outturn trading position for the Education Catering Service for the financial year 2009-2010.  In addition the report provided a summary of the Service’s action to date to work in partnership to promote Healthy Eating and increase the take up of school meals.

Reference was made to the trading account which was included as part of the report, along with meal numbers, income, food cost, labour and the budget for 2010/11, with a proposed increase in the price of a school meal by 5p per meal from September, 2010.

The Catering Service, whilst following the recommendations of the PriceWaterhouseCooper report, would always face uncertainties from the economic climate and the ability of pupils and their parents to buy meals.  Similarly, inflationary pressures on food could not be predicted with accuracy, therefore the service would continue to produce monthly trading projections and monitor the meal take up weekly to enable prompt action to be taken as necessary.

Cabinet Members considered the financial position, the inclusion of an increase of 5p of a school meal from September, 2010 in the budget for 2010/11 to contribute to the deficit carry forward, the current position of the trading account, the possibility of absorbing the deficit and increasing the cost of school meals over the next three years with all surplus contributing to the General Fund.

Clarification was sought on the status of the Schools Catering Service as trading account and information provided that by increasing the price of a meal by 5p the Schools Catering Service could be sustainable and start paying off its deficit.

Resolved:-  (1)  That the report be received and the contents noted.

(2)  That consideration be given to the budget deficit of the Schools Catering Service not being carried forward in accordance with the Council’s approved policy on the carry forward of year end balances.

(3)  That the increase in the price of a school meal by 5p from September, 2010 for the next three years be approved.

(4)  That in the event that the budget deficit is carried forward the deficit recovery be achieved over the next three years.

-        Strategic Director of Children and Young People’s Services to report.

Councillor Lakin, Cabinet Member for Children and Young People’s Services, introduced a report by the Strategic Director of Children and Young People’s Services, which contained details of the outcome of a review into Youth Service provision. Particular reference was made to buildings used by Rotherham Youth Service and in order to deliver 21st Century Youth Provision as envisaged by the Government agendas within Youth Matters and Aiming High - a ten year strategy for positive activities. It proposed a rationalisation of resources across the Borough to create a model that met existing demands and ensured an effective value for money delivery, in line with key recommendations from the 2008 Scrutiny Review “Future Challenges for the Youth Service”.

The report, therefore, gave an overview of proposals to rationalise the Youth Service building stock in order to deliver a more efficient and effective service and provided more information on:-

·              Buildings and Service Provision.

·              Review of building issues.

·              Conclusions.

·              Proposed baseline Model for Local Provision and Delivery.

·              Proposed changes re current building use.

·              Summary of recommendations:

Cabinet Members were mindful of the implications that rationalisation of the Youth Service building stock may have and suggested that further discussion takes place before a decision was made and that these discussions also involve the relevant Ward Members.

Resolved:-  (1)  That the contents of the report be noted.

(2)  That a further report be submitted outlining proposals once further discussions had taken place and the views of Ward Members taken into account.

-        Strategic Director of Neighbourhoods and Adult Services to report.

Councillor Akhtar, Cabinet Member for Housing and Neighbourhoods, introduced a report by the Strategic Director of Neighbourhood and Adult Services which set the context in advance of a final report being submitted to the Cabinet regarding the externalisation of the repair and maintenance service currently delivered by 2010 Rotherham Ltd’s in house service provider (IHSP).

The externalisation project was almost complete and a recommendation was to be made to the Cabinet on the 21st July, 2010 to award two contracts to commence in November, 2010.

Cabinet Members were mindful of the trading deficit for repairs and maintenance, but were satisfied that other core business operations were delivering on budget.

With the trading deficit for repairs and maintenance liable to increase should the process be delayed, it was proposed that every effort be made to ensure that the externalisation be complete by the end of September, 2010.

Cabinet Members were aware that there would be teething problems initially and stressed the importance of maintaining a local contact with the housing champions in order to address any difficulties should they arise.  It was also noted that any meetings arranged locally to address any issues at a local level should be arranged to ensure Ward Members could attend.

Resolved:-  (1)  That the impacts on the Council of externalising the repairs and maintenance service be noted.

(2)  That any potential issues be identified that could jeopardise the ability of the Cabinet to make a decision to award contracts on 21st July, 2010.